Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
3 Sept 2018
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of 33 companies under Section 45-IA(6) of the RBI Act, 1934. The named companies are all NBFCs, and the order means they can no longer carry on the business of a non-banking financial institution under Section 45-I(a) of the Act.
Why RBI Acted
The Reserve Bank of India exercised powers under Section 45-IA(6) of the RBI Act, 1934 to cancel the Certificates of Registration of 33 companies. The release states that, as a result, these companies shall not transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.
Operating Impact
All 33 affected companies are prohibited from conducting NBFC business going forward. Customers and counterparties should treat them as no longer authorised to undertake non-banking financial institution activities.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- clause (a) of Section 45-I of the RBI Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 18 Jul 2018
- Effective From
- 18 Jul 2018
- Entities Affected
- 33
- Entity Role
- Bulk Member
- Entity Type
- NBFC
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